TH E MOR E YOU LEAR N, TH E MOR E YOU EAR N
WWW.STUDENTADVISOR.COM
ULTIMATE
SCHOLARSHIP
SECRETS THE BEST WAYS TO GET FINANCIAL AID
10 TIPS ON:
APPLYING FOR SCHOLARSHIPS
GRANTS VS SCHOLARSHIPS WHAT’S THE DIFFERENCE?
HINT THERE IS $100 BILLION (YES BILLION) AVAILABLE
HELEN NUNN, DIR. OF FINANCIAL AID: 10 TIPS TO GET FINANCING
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EDITOR LEARN MORE, EARN MORE
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f you’re reading this guide, you’ve probably decided to pursue a college or professional degree. Good timing. Career changes and the need for new skills always increase when the economy itself is changing. You’ve probably seen Internet ads for free government grants and other free money for school, such as scholarships. This is partly true: there are thousands of student grants and scholarships from hundreds of providers, and they usually don’t have to be repaid. But it’s also true that there’s no such thing as completely free money. Scholarship and grant sponsors usually request a measure of commitment from you that begins with the application process.
WHAT TO EXPECT ABOUT FINANCIAL AID
There may be no single source of financial assistance that will cover all your education costs. For many students, the money required for tuition, fees, books, a computer, housing or transportation, childcare, and other education related expenses will have to come from a combination of financial aid sources. With federal education grants, state financial aid, and some tips on how to find scholarships, however, you may be able to piece together the funding you need without having to rely heavily on student loans.
Cheers!
Sandra Proulx Student Advisor Community Manager sproulx@studentadvisor.com
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CONTENTS
PART 1: ABOUT FINANCIAL AID • Introduction
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• Knowing What To Expect About Financial Aid
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• 10 Tips On Applying For Scholarships
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• Federal Aid First
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• What’s The Difference Between Need-Based And Merit-Based Financial Aid? • What Are Scholarships? • Who Provides Scholarships? • How to Apply For Scholarships
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FINANCIAL AID
Knowing What to Expect about Financial Aid
EDUCATION AS AN INVESTMENT: July 2009 data from the Bureau of Labor Statistics confirm that even in the current unsteady economy, workers with a bachelor’s degree will earn about 60% more than a worker with only a high school diploma.
There’s no such thing as completely free money. Scholarship and grant sponsors usually request a measure of commitment from you that begins with the application process. By Dean Tsouvalas
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here may be no single source of financial assistance that will cover all your education costs. For many students, the money required for tuition, fees, books, a computer, housing or transportation, childcare, and other education-related expenses will have to come from a combination of financial aid sources. With federal education grants, state financial aid, and some tips on how to find scholarships, however, you may be able to piece together the funding you need without having to rely heavily on student loans. So where do you start? Your first source of money for college is the FAFSA, the Free Application for Federal Student Aid. The application period for the FAFSA begins on January 1st of every year. You should file a FAFSA before you do anything else. The FAFSA can be done online at the Federal Student Aid website. Whether you submit the online form (much faster) or call them for a paper form, filing a FAFSA is absolutely free. (Don’t let anyone charge you a fee to file it for you.)
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WAYS TO: GET FINANCING The key to applying for scholarships is to follow each scholarship’s instructions carefully and to be thorough.
1. I DENTIFY THE COLLEGES which best meet your academic, extracurricular and geographic criteria. Investigate schools which represent a range of costs but do not let higher costs keep you from seeking admission.
Compiled by Helen Nunn, Susquehanna University Director of Financial Aid
2. U NDERSTAND THE DIFFERENCE between scholarships and need-based financial aid. Merit-based scholarship aid may be awarded to students with exceptional abilities in academic, music or other areas. Need-based aid is available to students whose families need help in meeting college costs. Most schools, not all, offer both types. 3. F IND OUT WHAT TYPES of aid are available at the schools you like best, which aid application forms are required, and the deadline for each school. College and university catalogs, financial aid brochures and Web sites, and admissions and financial aid staff are your best resources for this kind of information. 4. D ON’T RULE OUT PRIVATE COLLEGES because they may seem to cost more. The chance that your financial need will be met is actually greater at a private college or university because many state-supported schools cannot offer as many financial aid options. 5. A PPLY FOR THE TYPES of aid that best fit YOU. Everyone’s situation is different and everyone’s financial
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10 TIPS: GET FINANCING
aid experience is too. Don’t exclude yourself from the process because your neighbor didn’t qualify for scholarships or other forms of financial aid. 6. C ONSIDER THE FINAL COST to you rather than the listed price of the school. Understand how much of your expense can be met through financial aid programs. At many schools, the majority of students pay less than the listed price thanks to financial aid. 7. COMPARE THE AID PACKAGES, or the combination of scholarships, grants, loans and work-study awards, that you receive from different schools. Be sure that in each case you understand your family’s bottom line cost for the year, the amount of loans and the amount granted through student employment. 8. N OTIFY THE OFFICE OF FINANCIAL AID if there is a change in your family’s financial status in 2010. A financial aid package can be adjusted, even after the academic year begins, but the office can only consider special
circumstances if they have the new information. Keep the lines of communication open. 9. I NVESTIGATE OTHER KINDS of long-term, low-interest loans and monthly payment plans. There are a number of opportunities for parents to borrow or to spread their payments out over the course of the year or over as many as 10 years. Be sure to check out federal loans with taxdeductible interest. 10. S ELECT THE COLLEGE that offers you the best longterm value for the price and where your educational needs will best be met. Work and save as much as you can to achieve your goal.
FOR MORE INFORMATION ON FINANCING PLEASE VISIT: WWW.STUDENTADVISOR.COM
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FEDERAL AID
Federal Aid First
Your first source of money for college is the FAFSA, the Free Application for Federal Student Aid. The application period for the FAFSA begins on January 1st of every year. You should file a FAFSA before you do anything else. For tips on filling out your FAFSA please visit our Guide.
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very year, the U.S. Dept. of Education provides $100 billion a year in education grants, low-cost student loans, and work-study financial assistance to millions of students. Federal student aid can be used towards college degrees and most job training programs available at accredited colleges, universities, community colleges, and vocational or technical schools that participate in the Education Department’s Title IV classification. Just about everyone - from high school seniors to single moms to older students changing careers - is eligible for some form of federal financial aid. There is no age restriction. Your completed FAFSA is your automatic application for federal grants such as the Pell Grant. You can only get federal student grants by filing a FAFSA. State grant programs also use the FAFSA as proof of financial need, so you will need to file a FAFSA to be eligible for state student grants. Tip: A little research for this guide revealed that state grant programs are a rich source of grants for single mothers and other nontraditional students returning to school. The FAFSA is often an eligibility requirement for private grants and scholarships targeted to students with financial need. The FAFSA can be done online at the Federal Student Aid website. Whether you submit the online form (much faster) or call them for a
paper form, filing a FAFSA is absolutely free. (Don’t let anyone charge you a fee to file it for you.)
WHAT’S THE DIFFERENCE BETWEEN NEED-BASED AND MERIT-BASED FINANCIAL AID?
There are two kinds of financial aid: “need-based” and “merit-based.” Need-based financial aid is awarded to students whose expected income and ability to pay for education are limited. Most federal and state financial aid grants are awarded according to financial need and most federal student loans are specifically for families below a certain income level. Private grant and scholarship sponsors who don’t require you to file a FAFSA may ask for other documentation to prove your financial need. A merit-based scholarship or education grant is awarded in recognition of a particular accomplishment or set of accomplishments, such as a high grade point average, community service and leadership skills, artistic talent, athletic ability, or other measures of academic and personal success the scholarship sponsor has established as criteria for its award. When financial need is not considered, students at all income levels compete equally for merit-based financial aid. Today, with college costs so high, the distinction
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FREE FASFA FORM
between need-based and merit-based financial aid is not so clear cut. The Dept. of Education provides needbased grants for students, but a growing number of private merit-based scholarships have added a needbased component to their eligibility criteria. Thousands of foundations, organizations, corporations, trade associations, and schools offer merit-based scholarships, need-based scholarships, and scholarships that consider both financial need and merit.
WHAT ARE SCHOLARSHIPS? DOWNLOAD
Scholarships are essentially merit-based education grants. Like financial aid grants, scholarships do not have to be repaid, although some private scholarships may be subject to income tax. Scholarships are typically awarded to students based on outstanding achievement. Although many scholarships today include a financial need qualification, competition for merit-based scholarships can be intense. Scholarships have also been created for specific populations of students such as women, minorities, students with disabilities, first-generation college students, students with a specific religious affiliation, adult learners returning to school after years in the workforce, single moms, laid-off workers, and students willing to go into challenging, nontraditional, or highdemand careers. Although scholarship money does not have to be repaid, some sponsors may request a period of service from you after you graduate in exchange for the funding that helped you pay for your education. The service commitment may require you to work in public service for a while, such as teaching in a WHERE TO LOOK FOR SCHOLARSHIPS teacher-shortage area, or it could obligate you to be Your High School Guidance Counselor: If you’re a an ambassador for the organization, to promote its high school student, talk to your guidance office about mission and accomplishments. what career may be right for you; which schools are a good match for your college goals, career goals, WHO PROVIDES SCHOLARSHIPS? and budget; and which federal grants and private There are two primary sources of scholarships: scholarships you may qualify for. scholarships provided by individual colleges and Financial Aid Office of Your College, University, universities and scholarships sponsored by public or Career School: If you’re an independent adult and private organizations. student currently in school or returning to school, talk Individual colleges and universities usually award to the financial aid offices of the school or schools scholarships to students who have demonstrated you want to apply to. Finding out which scholarships talent, achievement, or leadership in academics, they can offer you may help you decide which athletics, or a specific creative or technical skill. school to enroll in. Many scholarships for financially Schools also provide scholarships for students who disadvantaged students, nontraditional students, plan to major in or pursue a career in specific fields of and single parents are offered at the school level. study, and for financially disadvantaged students who Scholarships and grants are available for graduate show academic and professional promise. students, too. Public and private scholarship sponsors include Your Employer: Many large corporations have nonprofit foundations and institutions, corporate and benefits or charitable foundations that provide industry foundations, trade associations, labor unions, scholarships for employees and children of employees. professional and social organizations, religious Aflac, Amtrak, Cargill, Coca-Cola, Conoco Phillips, organizations, and employers. Dunkin’ Donuts, ExxonMobil, Goodyear, Hanes, Kmart,
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FEDERAL AID
Lockheed Martin, McDonald’s, NASA, Nestlé USA, Outback Steakhouse, Papa John’s, Philips, Sears, 3M, Thomasville, Tyson, Verizon, Walt Disney, Wegmans, and Whirlpool all have employee scholarship programs. Industry Trade Associations & Professional Associations: Many industry trade associations have charitable foundations that offer scholarships to students pursuing education for industry-related careers. There are hundreds of U.S. industry trade associations and many have lobbyists, which means they have money. Professional associations may not have a lobbying arm, but they probably have education and scholarship information. Wikipedia list of U.S. Industry Trade Associations W ikipedia list of Professional Associations Labor Unions Many major labor unions offer scholarships for members and their dependent children. In addition to possible scholarship opportunities through your own or your parents’ union, the AFLCIO’s member benefits division, UnionPlus, offers scholarships.
HELPFUL TIP Beyond your school or employer, begin your scholarship search in your community or region. With local organizations, you’re more likely to be competing with a smaller number of scholarship applicants. Local Businesses & Nonprofit Community Organizations: You may find scholarship opportunities at your hometown independent bank or with nonprofit community, church, or civic organizations. National nonprofit organizations also offer scholarships, but in your own neighborhood, meeting scholarship providers face to face, you may get an edge out of being local. Sometimes these scholarships are meritbased; other opportunities may combine financial need with service to your community. SCHOLARS H I P G U I DE • STU DE NTADVISOR.COM •
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APPLY FOR S
HOW TO:
CONFIRM THAT YOU MEET ALL THE ELIGIBILITY criteria of each scholarship you want
to apply for. Don’t apply for a scholarship if you only “sort of” meet its requirements or meet “almost all” the criteria. You won’t be considered and you’ll only annoy application evaluators you may want to send an applicationto in the future, when you fully qualify.
CONFIRM THE DEADLINE for each scholarship
and schedule on a calendar when you should have those applications in the mail. Applications that are even a day late will not be considered, so leave yourself several days ahead of each due date for mail delays or other last-minute complications. If you have to fill out an online application in addition to mailing supporting documents, schedule in some time to get online to do that.
• FAFSA or your income and personal assets • Grade Point Average (GPA) and transcripts • Proof of enrollment or acceptance for admission from your school • Your education goal depending on the type of scholarship you’re applying for, you may also be asked for nomination from the scholarship representative at your school • Personal or professional references (include an up-to-date phone number, email address, and mailing address for each reference) • Community or education achievements • Commitment to a service obligation • Essay
GET IN TOUCH WITH YOUR REFERENCE WRITERS. Make sure you give them plenty of time
to write your reference letter—you will likely get a more
ORGANIZE YOUR SCHOLARSHIPS BY positive reference that way. DEADLINE and make a list of all the information each application requires. Most scholarships will RECYCLE YOUR ESSAYS. If you find you’re
ask for: writing more or less the same essay for each scholarship, • Application form (check for a downloadable form reuse one you’ve already written and modify it to respond in PDF format) specifically to each scholarship’s topic.
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STEPS TO SUCCESS
SCHOLARSHIPS
PROOFREAD YOUR APPLICATIONS AND ESSAYS carefully for misspellings and errors in
grammar and word usage. (Watch out for mistakes with your and you’re; its and it’s; were and we’re; their, there, and they’re.) If you’ve reused an essay, make sure you’ve changed the name of the scholarship or organization everywhere it can be found.
REVIEW ALL THE PIECES of your application packet. Make sure you have everything required and nothing the scholarship instructions didn’t ask you for.
MAKE COPIES OF EVERYTHING in your
application packet before you mail it. (What if the original got lost in the mail?!)
SUBMIT YOUR APPLICATION packets earlier than “right on time.” Just in case!
FOLLOW UP WITH EACH SCHOLARSHIP
sponsor to verify that each received your application packet. Did online application forms send you a confirmation email?
NEXT STEPS For more information on education scholarships, student loans, and other financial aid topics, visit : EDUCATIONGRANT.COM To receive information from schools that can help you find the right education program and navigate financial aid, visit: COURSEADVISOR.COM For information on online degree programs and online education, visit: ONLINEDEGREEFINDER.COM
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